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...absence of high-quality holdings to provide liquidity should have raised concerns for any investor.
What a bunch of crap. Did this author write a similar story before the collapse entitled "everybody get out asap because this fund is going to lose 1/2 it's value"? Shoulda, coulda, woulda...The fund’s chart-topping returns in recent years... should have also raised questions...
I agree. I notice muni money market now yielding 4% comparing to the typical 1% of federal money market funds. This is seldom observed.muni bond funds and high yield munis also lost big recently (and in 2008). Muni funds had huge increases today — 3-5% — which is unheard of for munis. Personally I think most of the recent bond fund drops were due to liquidity issues from traders selling bonds, after stocks dropped so much, and overwhelming the markets.
I just looked up MGGPX and can't believe it currently only lost 13% this year. Again, I thank Ted for that one :-)I am also looking at what to prune and what to add. Two global growth funds, MGGPX and BGAFX, have held up amazingly well. I own the former, but consider the latter to be its equal. As of last night neither fund had lost more than 15% YTD, with the Baron fund at around -9%. All this could change in an instant, but I could see jettisoning APFDX and cutting back on DSENX in favor of one or both of MGGPX or BGAFX. Kind of surprised the Baron fund is not a Great Owl.
https://cnbc.com/2020/03/25/negative-rates-come-to-the-us-1-month-and-3-month-treasury-bill-yields-are-now-negative.htmlThe one-month and three-month Treasury bill yields turned negative Wednesday.
“This is part and parcel of the whole flight to quality thing,” said Kim Rupert, managing director of global fixed income at Action Economics.
“Everyone is expecting the Fed to be lower for longer, and I mean longer. The whole bias is for yields to go lower. I would not rule out the front end of the curve going negative.”
I do have great confidence in David Giroux (spelling?) at PRWCX. I believe his long-term play in utilities is smart. It's still my biggest holding, even after this Virus Crash. I'll not be switching horses in mid-stream.If you believe it is possible to recapture the loss to your portfolio, to whatever level you choose, what investment option(s), (large-cap, mid-cap, small-cap, international large, small, emerging market or gold/silver) would you place your bets and what funds would you have the most confidence for the option(s) you choose.
In the article, he talks about government bonds which are usually Treasury bills, (there are Treasury notes, and Treasury Inflation-Protected Securities (TIPS))This excerpt seemed worth noting:Automatically re-balancing (selling bonds that appear to be getting hammered right now as well) doesn't seem so helpful to one's portfolio.My back-of-the-envelope calculation shows that a 60/40 stock/bond portfolio in mid-February has now become a 51/49 portfolio, entirely on the basis of market action. This is very large drift in a very short time. Given the many trillions of dollars in assets that follow some sort of multi-asset class approach, the coming rebalance could well be in the range of a few hundred billion.
Automatically re-balancing (selling bonds that appear to be getting hammered right now as well) doesn't seem so helpful to one's portfolio.My back-of-the-envelope calculation shows that a 60/40 stock/bond portfolio in mid-February has now become a 51/49 portfolio, entirely on the basis of market action. This is very large drift in a very short time. Given the many trillions of dollars in assets that follow some sort of multi-asset class approach, the coming rebalance could well be in the range of a few hundred billion.
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